To stop money laundering and terrorism financing, European Union legislators have endorsed a new draught rule putting a maximum of 1,000 euros ($1,083) on anonymous cryptocurrency transfers.

When a consumer cannot be identified, the limit would apply to a crypto asset transfer, according to a statement made by the European Parliament and released on March 28. The maximum amount for cash transactions will also be 7,000 euros ($7,585).

In a plenary meeting scheduled for April, the Anti-Money Laundering and Countering the Funding of Terrorism package will be approved. Negotiations on the bills' ultimate form will then start, it was stated.

It was underlined that the laws will eventually be enforced by the European Anti-Money Laundering Authority (AMLA), which would be established in June 2022.

According to Emil Radev, co-rapporteur for the AMLA, "For us, it is important the new authority cooperates very closely with national supervisors and that it directly supervises the riskiest crypto asset service providers and companies in the financial sector that operate in several member states."

With 99 votes in favor, 8 against, and 6 abstentions, MPs decisively adopted the language dealing with anonymous instruments, including crypto assets. According to the recently accepted draught, presenting the measure will necessitate increased compliance and transparency, especially from crypto asset managers.

According to the statement, entities, such as banks, asset and cryptocurrency managers, real estate agents, and high-level professional football clubs, will be forced to verify their customers' identities, what they own, and who runs the organization.

Additionally, it was emphasized that the various businesses would need to identify the particular dangers of money laundering and terrorist funding that pertain to their line of work and report this pertinent information to a central registry.